Housing Market Report-May 2018

June 28, 2018October 22, 2018byoconomowocrealty

Demand for homes in Wisconsin remained strong in May but the number of home sales fell 5% compared to May 2017 according to the Wisconsin REALTORS® Association’s May 2018 Home Sales Report. In contrast, median home sales prices increased 8% over the same period. The main reason for the drop in home sales and increase in home prices is lack of inventory of homes on the market, which has been a nationwide problem. Metropolitan counties in the state had just over 3.5 months of housing supply in May compared to rural counties which had over 7 months of supply. Typically, anything less than 6 months of housing supply signals a Seller’s market.

WRA President and CEO, Michael Theo indicated, “You still get a lot of home for your money in Wisconsin, but affordability has begun falling more rapidly as home price appreciation has accelerated and mortgage rates have inched up.” Last month, the 30-year fixed mortgage rate increase to 4.59% from 4.01% in May of 2017. Theo goes on to say that it is still possible to find good value in today’s market and an experienced realtor who knows the markets well is your best bet to find the right home. He adds that the key to success when you find the right home is to have your financing pre-approved, avoid contingencies, and move quickly with your realtor.